Galaxy’s Alex Thorn Says Bitcoin Held Near $80,000 Because Hedge Funds Had Already Sold

Introduction

In a recent Unchained interview, Alex Thorn, head of firm‑wide research at Galaxy Digital, explained why Bitcoin has remained anchored around the $80,000 level despite a month of heightened anxiety over artificial‑intelligence (AI) exposure in the broader market. Thorn points to data from quarterly 13F filings that show a wave of selling by macro‑focused hedge funds and bank trading desks, suggesting that the most likely sellers have already exited their positions.

Hedge‑Fund and Bank Desk Selling

Thorn’s analysis draws on 13F disclosures, which require large money managers to report their holdings of spot Bitcoin exchange‑traded funds (ETFs). Between the September 2025 and June 2026 reporting periods, nine filers—including Goldman Sachs Group, Millennium Management, and Capula Management—reduced their ETF stakes by 29 % to 100 %, collectively shedding roughly 68,000 BTC. Across all 2,200 filers, total spot Bitcoin ETF holdings fell 14 % from an equivalent of 355,000 BTC to 307,000 BTC. The net decline of 48,000 BTC is smaller than the 68,000 BTC off‑loaded by the nine most aggressive sellers, underscoring that a concentrated group of trading‑driven funds drove the bulk of the reduction.

Why the Market Stays Near $80,000

Thorn argues that the resilience of Bitcoin at the $80k mark stems from the fact that the investors most likely to panic over AI‑related risk—macro and multi‑strategy hedge funds, as well as bank desks that run ETF‑futures basis trades—have already trimmed their exposure. "People ask why Bitcoin’s been so resilient around 80 while everybody has a wall of worry meltdown about the AI trade the last month," Thorn said on the Unchained episode. "It’s because none of the people freaking out about AI own Bitcoin. It’s not in their inventory to sell."

He also noted that the remaining holders tend to be longer‑term capital, such as wealth‑management arms of institutions like Morgan Stanley and sovereign‑wealth entities like Mubadala. These investors are more likely to rebalance on a quarterly basis rather than react to short‑term market sentiment.

Outlook and Upcoming Data

The next set of 13F filings, due November 16, will reveal which large managers retained their spot Bitcoin ETF positions through September. Thorn expects that the biggest filers typically wait until the filing deadline to disclose their holdings, so the upcoming data should provide a clearer picture of the longer‑term institutional stance.

On the macro side, Thorn sees signs that AI‑related anxiety may be easing. Positive developments such as strong earnings from SK Hynix, a rebound in the Korean Kospi, Oracle’s investor‑day announcements, and a Federal Reserve meeting that left rates unchanged have all contributed to a more tempered market mood.

Practical Takeaway

For investors watching Bitcoin’s price action, the key insight is that the current price stability reflects a shift in the composition of institutional holders rather than a fundamental change in demand. The most reactive, short‑term traders have largely exited, leaving a base of longer‑term investors who are less likely to sell on headline‑driven volatility. Monitoring the upcoming 13F filings will be essential to gauge whether this institutional backbone remains intact or if new sellers emerge.

--- This article was prepared using AI assistance and reviewed for accuracy by the editorial team.